3 Buckets
Its' always nice to make plan for the new year and make resolutions to save or invest money as pert of the new year beginning. Often the question arises on how to do it? Here are some ways to get started:

  1. Start a new, rather 3 type of new bank accounts and name it: INCOME, EXPENSE, SAVING
  2. If you already have a (company opened/ Zero balance), where your salary or most of your income comes in, then name it INCOME
  3. Make a list of all your household expenses, which I categorise as 3: household expense like kitchen etc., then Lifestyle expenses like movie etc, and last, Necessary (can't help it types) like EMI etc.
  4. INCOME account: should have all the "inflows" like salary, interests, dividends etc. coming in to this account, lets say Rs. 10,000/- per month
  5. EXPENSE: here you should have all expenses may be on auto debit mode but no savings linked here.lets say Rs. 7,000/- per month
  6. SAVING: Now from Rs. 10,000/-, less of Rs. 7,000/-, you have a balance of Rs. 3000/- as per the above example.
  7. Once above steps are taken, then you have got certain amount sure to be saved on regular basis and this is what you need to start linking to your financial goals seed money and start lets say ELSS, or other SIP as per your risk profile, goals, investment horizons etc.
  8. So your 3 buckets are lined up and you can make easy plans for goals under this "Advantage 3 Bucket Theory"; its one of the simplest methods of starting your financial planning and for more details, it would be nice to consult a professional financial planners like a 
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